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The Arsal Labour Market Assessment - ALMA

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The Arsal Labour Market Assessment - ALMA The Arsal Labour Market Assessment - ALMA 1 Study completed by Copyright © 2018 All rights reserved for UNDP and UNHCR This analysis of this report do not necessarily reflect the views of the United Nations Development Programme and the United Nations High Commissioner for Refugees. 2 Table of Contents List of Abbreviations ............................................................................................................................ 4 Note on Terminology ........................................................................................................................... 4 List of Figures ......................................................................................................................................... 6 List of Tables ........................................................................................................................................... 7 Executive Summary .............................................................................................................................. 8 1. Research Objectives ................................................................................................................... 10 2. Methodology ................................................................................................................................. 11 3. Limitations..................................................................................................................................... 14 4. Background & Context ............................................................................................................... 15 5. Findings .......................................................................................................................................... 20 5.1. Economic Snapshot: Lacking Labour ......................................................................................... 20 5.2. Sector Overview: Sectors in shambles ....................................................................................... 25 5.3. Enterprise Overview: Little Fish, Little Pond .......................................................................... 37 5.4. Employment, Education & Skills: Mismatched Market........................................................ 40 5.5. Barriers to Employment/ Self-employment ............................................................................ 51 5.6. Opportunities to Promote Employment/ Self-employment in Arsal. ............................ 59 6. Recommendations ...................................................................................................................... 75 6.1. Overarching Recommendations .................................................................................................. 75 6.2. Value Chain Development in Key Sectors ................................................................................. 78 6.3. Short-term Recommendations ..................................................................................................... 80 7. Annexes. ......................................................................................................................................... 82 Annex A: Additional Table(s) ..................................................................................................................... 82 Annex B: Research Tools ............................................................................................................................. 83 3 List of Abbreviations ALMA Arsal Labour Market Assessment GCC Gulf Cooperation Council GT Grounded Theory IDK I don’t know ILO International Labour Organization ISCO International Standard Classification of Occupations ITS Informal Tented Settlement LAF Lebanese Armed Forces LARI Lebanese Agricultural Research Institute LBP Lebanese Pound LMS Labour Market Study NGO Non-governmental Organisation NPTP Emergency National Poverty Targeting Program OECD The Organisation for Economic Co-operation and Development UNDP United Nations Development Programme UNHCR United Nations High Commissioner for Refugees USD United States Dollar VCD Value chain development Note on Terminology This report aims to allow readers from different technical backgrounds to comprehend its findings and recommendations. The terms and expressions used are intended to be both technically sound as well as widely comprehensible. Readers should be aware of how this report employs the following terms in order to deepen their understanding of its content: Syrian refugee influx This assessment considers the influx of Syrian refugees to have begun in 2011, but broadly considers that the bulk of Syrian refugees to have arrived from 2012 onwards. Vertical markets A vertical market describes a single value chain process connecting raw materials to final product. For example, in the quarrying/stonecutting sector, raw materials such as stones are removed from mountains, transported by trucks to the different stonecutting workshops, where they are cut into construction-grade materials and transported for sale to construction companies. Each link in this value chain is considered a vertical market. 4 Horizontal markets In contrast to vertical markets, horizontal markets describe services or production processes that are not focused on a single value chain but provide the same services or production processes to different value chains. For example, the transport sector provides services to businesses in the quarrying/stonecutting sector, but also to the agricultural and retail sectors. Population Unless otherwise specified, this research considers the population to be the working age population, which is comprised of all inhabitants of Arsal between the ages of 15 to 65. The population covers both genders as well as residents (Lebanese) and refugees (Syrians). Employment Persons in employment belong to the population and have worked for at least one hour in employment (for a monetary or non-financial gain) or self-employment (for monetary or non-financial personal or family profit) during the past week.1 Unemployment Persons experiencing unemployment are those which belong to the population, have not worked in employment or self-employment within the past week, are ready to start work within the upcoming two weeks, and have undertaken explicit steps to seek either employment or self-employment (e.g. applying to private or public entities).2 Active Labour Market Participants The active labour market population describes all people who are currently employed or unemployed. Inactive Population The inactive labour market population describes all people who are neither employed nor actively looking for work.3 For example, women who do not actively seek out employment, conduct household duties, or raise children are considered inactive. Arsal 1 OECD: Glossary of statistical terms: Employed Persons. Retrieved from: https://stats.oecd.org/glossary/detail.asp?ID=764 2 OECD: Glossary of statistical terms: Unemployment - ILO. Retrieved from: https://stats.oecd.org/glossary/detail.asp?ID=2791 3 OECD: Glossary of statistical terms: Inactive Persons (Labour Market). Retrieved from: https://stats.oecd.org/glossary/detail.asp?ID=6251 5 The town of Arsal is situated in north-eastern segment of the Baalbek district (Arabic: qada) of Lebanon’s Baalbek-Hermel governorate.4 For ease of reading, Arsal describes the administrative borders of the built-up area and its surrounding areas which covers around 317 square kilometres. List of Figures Figure 1: Employment rate per nationality, Percentage of respondents per nationality ............. 22 Figure 2: Employment rate per gender, Percentage of respondents per nationality ................. 22 Figure 3: Nature of employment, Percentage of respondents ................................................... 23 Figure 4: Type of employment per nationality, Percentage of respondents per nationality ....... 23 Figure 5 Type of employment Percentage of respondents ....................................................... 24 Figure 6: Sector of employment, Percentage of respondents (Lebanese) ................................ 26 Figure 7: Sector of employment, Percentage of respondents (Syrians) .................................... 27 Figure 8: Informality by sector, Percentage of informality by sector .......................................... 28 Figure 9: Ownership and establishment year, Percentage of total respondents....................... 38 Figure 10: Registration type Percentage of total respondents ................................................. 39 Figure 11: Enterprise size Percentage of total respondents..................................................... 39 Figure 12: Payment rate per nationality, Percentage of total employed respondents ............... 41 Figure 13: Monthly income per nationality (USD), Percentage of total employed respondents . 42 Figure 14: Monthly compensation per sector in USD (Syrians) ................................................ 43 Figure 15: Monthly, compensation per sector in USD (Lebanese) ............................................ 44 Figure 16: Income level per education group in USD/month..................................................... 45 Figure 17: Skill sets among workers, Percentage of total respondents ..................................... 46 Figure 18: Skill mismatch by sector (L,C) and Difficulties hiring workers’ with specific skill sets 47 Figure 19: Level of education per nationality, Percentage of respondents, by nationality .......
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